Custom computers inc. assembles custom home computer, Ask an Expert

Management Studies

Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each and are ordered in quantities of 1500 units. Annual demand is 7500 fan assemblies, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $60. Calculate the following:
a. Average inventory level
b. The number of orders placed per year c. The total annual inventory holding cost d. The total annual ordering cost
e. The total annual cost

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9390539

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